Leverage ratios indicate:
A) the relative amount of funds in the business supplied by shareholders.
B) a company's ability to pay short-term debts.
C) management's ability to generate a financial return on sales or investment.
D) the profit margins for the last six months.
E) the future profits from the current customer basE.

Question

Quizplus · Accepted Answer

There are three categories of financial ratios: liquidity,leverage,and profitability.Leverage ratios show the relative amount of funds in the business supplied by creditors and shareholders.

Leverage Ratios Indicate